Republic Airways said it expects the restructuring of its Frontier unit to pay off in improved results for the current third quarter.
The company said it expected total revenue per available seat mile to rise about 5 to 7 percent at Frontier in the third quarter. Operating margin at Frontier should be 7 to 9 percent, compared with a flat margin in the year-earlier third period.
"We do have an optimistic view that we're going to see further gains achieved as of the continued network restructuring that's ongoing at Frontier," Republic Airways chief executive Bryan Bedford said. He said the company was also revamping its small regional jet operations.
Indiana-based Republic, which also owns regional carriers Chautauqua Airlines and Republic Airlines, said it expects consolidated earnings of 45 cents to 55 cents a share for the third quarter.
Lower operating expenses and Frontier improvement helped produce higher-than-expected second quarter results, which Republic Airways announced after markets closed on Tuesday.
Net income for that period was USD$20 million, compared with a year-earlier loss of USD$14.9 million.
Revenue fell 1.6 percent to USD$728.1 million in the second quarter. Fuel expenses fell nearly 16 percent in the period.